Category Archives: Housing Market

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Pending Home Sales Much Lower Than Expected
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And we have a trifecta!  All three of the home sales indicators for December have now come in positive, although the latest, pending sales, did so leaving claw marks on the scales. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) eked out a 0.1 percent advance over November.  The median forecast called for a 0.8 percent increase.  Existing home sales and new home sales, both reported within the last week, had month-over-month increases in the double digits.

The PHSI, a forward looking indicator based on contract signings, registered 06.8 for the month, 4.2 percent higher than a year ago.  The index has increased year-over-year for 16 straight months.  At the same time, NAR revised its original index for November down from 106.9 to 106.7.

The December gain, tiny as it was, was only possible because the Northeast region experienced a bit of a contract signing boomlet, increasing 6.1 percent to 97.8.  The index for the region is now 15.3 percent higher than the previous December.  The region’s gain offset losses in the other three regions.

The Midwest saw a decline of 1.1 percent to 103.6, remaining up 3.6 percent year over year. Pending home sales in the South declined 0.5 percent to an index of 119.3 but are 1.0 percent higher than in December 2014. The index in the West decreased 2.1 percent in December to 97.5, maintaining a 3.4 percent annual edge.

Laurence Yun, NAR chief economist, says contract activity closed out the year on stable footing but lost some momentum, except for in the Northeast. “Warmer than average weather and more favorable inventory conditions compared to other parts of the country encouraged more households in the Northeast to make the decision to buy last month,” he said. “Overall, while sustained job creation is spurring more activity compared to a year ago, the ability to find available homes in affordable price ranges is difficult for buyers in many job creating areas. With homebuilding still grossly inadequate, steady price appreciation and tight supply conditions aren’t going away any time soon.”

According to Yun, although healthy labor market conditions will persuade more households to buy, other factors could serve to curtain overall demand in the next few months.  He cited the large post-New Year losses in the stock market and the slowing of manufacturing activity in some local areas, especially those reliant on energy production.  These could create enough economic uncertainty or even a financial inability for some to buy a home.

“The silver lining from the market turmoil in recent weeks is the fact that mortgage rates have slightly declined,” says Yun. “Buyers looking to close on a home before the spring buying season begins may be rewarded with a mortgage rate at or below 4 percent.”

NAR forecasts that existing-homes sales this year will be around 5.34 million, an increase of 1.5 percent from 2015. The national median existing-home price for all of this year is expected to increase between 4 and 5 percent. In 2015, existing-home sales increased 6.5 percent and prices rose 6.8 percent.

Rents – which have far outpaced wages in recent years – are expected to slightly slow to 3.3 percent growth in 2016 from 3.6 percent a year ago. Multifamily housing starts are expected to reach 420,000 units this year, the highest level since 1987.

How Fixer Uppers Help the Housing Market

There is plenty of truth to the idea that high quantities of distressed homes can bring down the market as a whole. Distressed, untended properties are an eyesore that decrease property values for everyone in the neighborhood. So in a state where foreclosures and short sales are still high, many real estate investors are putting their money into these fixer uppers.

The low price entry point for fixer uppers is what allows so many investors to get involved in this area. Houses sold at short sales go for significantly less than what they’re worth. Your first thought might be, how can houses being sold for less than their worth be good for the market as a whole? Well, many investors are choosing to invest in significant repairs, both structural and aesthetic, to these houses. This brings their value back up to a normal market level. Then these houses, which were once a blight on their neighborhoods, are returned to the market in much better condition, and at a much better value. Now that these houses are once again attractive to potential buyers, the market sees more activity in an area where it was once struggling, and neighborhoods are revitalized. This is all thanks to the efforts of investors who see potential in an undervalued market.

fixer upper housing market

If you’re looking to invest in low-cost properties with lots of earning potential, we can help. Gray’s Home Solutions has properties of all types across the state of Maryland. Contact us for a full list of properties. Even if you’re not looking to buy right now, you can participate in our sellers referral program. Here’s how it works. Send us the phone number and property address for a For Sale By Owner or vacant property. We’ll take a look, and if we buy the property we’ll pay you $250 as a thank you for providing the lead.

Are you interested in learning more about selling your home fast? Our ebook has a ton of great information for you. We also have an ebook with information on how to avoid foreclosure, available for download here. They’re both free, so give them a look. You can also connect with Grays Home Solutions on FacebookTwitterGoogle+, and LinkedIn for more real estate made simple.

The Impact of Investors on the Housing Market

The housing market is recovering slowly but surely, in no small part because of the efforts of investors who see the value in homes that others may overlook. In Maryland especially, these kinds of homes are becoming a common sight as foreclosure rates continue to rise. Maryland has the third highest foreclosure rate in the nation according to RealtyTrac, and as a backlog of foreclosures continues to make its way through the judicial system, it’s unlikely this trend will change anytime soon.

 

However, smart investors see the possibilities presented by these properties, and by investing in them they help not only themselves, but the entire market. First, they take a rundown property off the market. This helps the market from becoming saturated with these kinds of properties, which helps keep property values from getting too low. Investors also create work for the construction industry by enlisting contractors to fix up rundown homes. They create work for agents to sell these properties, and opportunities for families looking for quality and affordable housing. Finally, by returning a great home to the market, investors bring up the value of other homes in the area, which can revitalize a stagnating neighborhood. With the efforts of investors, formerly distressed properties that brought the market down can be used to bring it back up again.

 

real estate investing

 

If you’re looking to invest in low-cost properties with lots of earning potential, we can help. Gray’s Home Solutions has properties of all types across the state of Maryland. Contact us for a full list of properties. Even if you’re not looking to buy right now, you can participate in our sellers referral program. Here’s how it works. Send us the phone number and property address for a For Sale By Owner or vacant property. We’ll take a look, and if we buy the property we’ll pay you $250 as a thank you for providing the lead.

Are you interested in learning more about selling your home fast? Our ebook has a ton of great information for you. We also have an ebook with information on how to avoid foreclosure, available for download here. They’re both free, so give them a look. You can also connect with Grays Home Solutions on FacebookTwitterGoogle+, and LinkedIn for more real estate made simple.

Source

http://www.bizjournals.com/baltimore/blog/real-estate/2013/11/officials-launch-offensive-against.html?page=all

Baltimore Real Estate on Recovery Track Despite Foreclosures

A recent assessment of the housing market’s recovery by RealtyTrac Inc. put Baltimore on the bottom of the list. While the average recovery index nationally was 100, Baltimore’s index was just 80, the lowest score in the nation.

This is mainly due to a backlog of foreclosures which recently hit the market after efforts by the state government to protect vulnerable homeowners resulted in a large number of foreclosures being held up by the judicial system. These foreclosures combined with other distressed sales gave Maryland its low mark.

However, there are signs that the state’s housing market is on its way back. The influx of foreclosures had been anticipated for some time, and other factors are already working to bring the market to a more normal pace. The median sale price of single-family homes in the state grew 5.6% in the first half of 2013, according to the Baltimore Business Journal. In addition, only 25% of houses in the Baltimore region were classified as underwater mortgages, meaning a house that is worth less than its mortgage note. This statistic signifies an increase in home prices which bodes well for the market.

Home sales are up, but are still lagging behind the national averages, an increase of 9% and 19% respectively. In a response to RealtyTrac’s report, Maryland Department of Housing and Community Development Commissioner Raymond Skinner stated that the state’s recovery “continues at a very strong pace.”

Home selling

 

If you’re looking to sell a home, your answer is Grays Home Solutions. We cover it all, no matter where you are in the home buying or selling process. We’re professionals with the experience to aid you in navigating this difficult home market.

If you have a house that is in need of repairs and that you wish to sell, don’t hesitate to contact Grays Home Solutions. Use our fast response form and we’ll reply to you as quickly as possible.

We also have a sellers referral program! All you have to do is send us the telephone number and property address for every For Sale By Owner or vacant house you can find. Or if you know someone who has a house for sale, send us their information. If we buy the house we’ll pay you $250 just for providing the lead!

To learn more about how to sell your home in days instead of months, please download our ebook today! Or learn about our super easy referral system that benefits sellers and buyers!

Follow Grays Home Solutions on FacebookTwitterGoogle+, and LinkedIn for more real estate made simple.

 

 

Source

 

http://www.bizjournals.com/baltimore/blog/real-estate/2013/08/marylands-high-foreclosure-rate-skews.html?page=all

Market Forecast for the Second Half of 2013

The housing market continued to make steady, if slow gains, during the first half of 2013. Sales of new homes are up 38% since last year, and hit a five-year high in June. Sales of previously owned homes are 15% higher than last year as well. So what does the second half of 2013 hold for the housing market?

housing forecast second half 2013

As a whole, growth in the market is expected to increase moderately, a total of 2.1% growth in 2013 compared to 1.7% growth in 2012, according to Fannie Mae Chief Economist Doug Duncan. Home prices have been estimated to increase between 6-12% in the second half of the year.

Inventory is expected to increase during the second half of 2012, which is especially good news considering it hit a 12-year low earlier this year. While there were 7% less homes for sales in June 2013 than in June 2012, inventory grew 4% between May to June of this year. Inventory growth on a year-to-year basis may begin to increase this fall.

Mortgage rates are expected to continue to increase, albeit at a slower pace. Despite the rising rates, buying is still currently less expensive than renting. This pattern is expected to hold for the near future.

Foreclosures are on the decline nationwide, and are expected to continue to decrease. Foreclosure filings in the first half of 2013 were down 19% from the second half of 2012. However, some states are still seeing increases, including Maryland, due to the fact that lenders are just now getting to foreclosures that had been delayed by judicial process.

 

If you’re looking to sell a home, your answer is Grays Home Solutions. We cover it all, no matter where you are in the home buying or selling process. We’re professionals with the experience to aid you in navigating this difficult home market.

If you have a house that is in need of repairs and that you wish to sell, don’t hesitate to contact Grays Home Solutions. Use our fast response form and we’ll reply to you as quickly as possible.

We also have a sellers referral program! All you have to do is send us the telephone number and property address for every For Sale By Owner or vacant house you can find. Or if you know someone who has a house for sale, send us their information. If we buy the house we’ll pay you $250 just for providing the lead!

To learn more about how to sell your home in days instead of months, please download our ebook today! Or learn about our super easy referral system that benefits sellers and buyers!

Follow Grays Home Solutions on FacebookTwitterGoogle+, and LinkedIn for more real estate made simple.

Source

http://www.forbes.com/sites/morganbrennan/2013/07/26/what-to-expect-from-housing-in-the-second-half-of-2013/2/